Unemployment rises at slowest pace in more than a year
Unemployment rose at the slowest pace in more than a year this month, indicating the worst of the job losses may have passed.
Jobless claims on a seasonally adjusted basis climbed by just 600 from August to 429,400, the smallest increase since April 2008, the Central Statistics Office (CSO) said today.
The unemployment rate was unchanged at 12.6pc after the August number was revised up from 12.4pc.
On an unadjusted basis, the number of unemployed fell by 16,417 in September from August, partly due to the resumption of school after the summer break.
While unemployment is now at the highest level in 14 years, an improving economic outlook means it may not increase as much as previously anticipated, according to Bloxham Stockbrokers in Dublin.
“The figures offer some ray of hope that the worst is over on the job losses front and things are slowly starting to stabilise,” said Alan McQuaid, chief economist, in a note today.
Unemployment will probably peak at around 13.5pc, “which is a significantly better outcome than was envisaged a few months ago,” he said.
Ireland’s economic slump may bottom at the end of this year, Rossa White, chief economist at securities firm Davy, said in a report yesterday.
He sees GDP expanding 1.2pc in 2010 after a 6.3pc contraction this year.
The unemployment rate may peak at 13.6pc in the third quarter of 2010, White said.
(Bloomberg)
- Fergal O’Brien
